ACCT 386 - Week 6 - Homework - Question 6

ACCT 386 - Week 6 - Homework - Question 6

There may be chances that the figures given in our question and your question doesn't matches. Don't worry, we are here to help you. Just write to us at studentwhiz@gmail.com and your answer is with you in no time.

Question 6

Topline Surf Boards manufactures a single product. The standard cost of one unit of this product is as follows:

Direct materials: 5 feet at $0.90 per foot

$

4.50

Direct labor: 1 hour at $5.20 per hour

5.20

Variable manufacturing overhead: 1 hour at $2.70 per hour

2.70

Total standard variable cost per unit

$

12.40

During October, 5,900 units were produced. Selected data relating to the month’s production follow:

Material purchased: 65,000 feet at $0.85 per foot

$

55,250

Material used in production: 38,200 feet

—

Direct labor: ? hours at $ ? per hour

$

25,600

Variable manufacturing overhead cost incurred

$

20,420

Variable manufacturing overhead efficiency variance

$

1,350

U

There was no beginning inventory of raw materials. The variable manufacturing overhead rate is based on direct labor-hours.